Alcoa Inc. has agreed to sell property, water rights and other assets at its Rockdale, Texas, site to the Lower Colorado River Authority.
The sale will include 34,000 acres, surface and groundwater rights, some plant and equipment assets and Alcoa’s power contracts with Texas energy provider Luminant. The aluminum manufacturing giant said Wednesday that it will retain the smelter and aluminum powder operations, which have about 70 employees.
Terms of the agreement were not disclosed. It is expected to be finalized by early next year pending regulatory approvals and other conditions.
Alcoa, which is headquartered in New York, curtailed smelting operations at the Rockdale facility in 2008. It shut down some operations at the facility in January to cut costs in the face of weak aluminum prices.
The Lower Colorado River Authority delivers electricity and manages the water supply and environment of the lower Colorado River basin, among other responsibilities.
Shares of Alcoa rose 4 cents to close at $8.73.